The pandemic may squeeze revenues of small Canadian businesses for years in a so-called L-shaped recovery unless Ottawa clears federal aid logjams and boosts consumer confidence, an entrepreneur group says.
Restaurants and hotels could take more than eight years to resume pre-pandemic income while building management companies are on pace for a five-year recovery and lawyers and accountants may need two and a half years, according to the Canadian Federation of Independent Businesses.
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Only eight per cent of its members in the hospitality industry said their sales figures had returned to normal levels, according to a CFIB survey.
By mid-September less than a third of all small companies had returned to at least normal revenue levels, the federation said in a research note. Simon Gaudreault, senior director of national research at the federation, says there must be a balance between averting a second wave and making it easier for small businesses to obtain loans and rent relief.?